It's no secret that Lake Geneva vacation home owners have developed a sincere disdain for price reductions. Just yesterday I was going over some listings with a customer, and as I rattled through a dozen or so lake access listings, I put stars by the ones that I liked. I gave out very few stars. Instead, I found that several of the asking prices were exactly the same as they were last year. Many properties have been on the market for a year or longer, which leaves me feeling like I'm selling real estate in Door County instead of Lake Geneva (subtle dig at Door County, with their incredibly long lead time from list to sale). I scratch my head and wonder what the sellers are thinking. Do they think that a buyer is going to view their home, prodded by their agent, encouraged by friends, and once they're all worked up into a sloppy lather, they'll buy the overpriced home for ridiculous price? That must be what they think, but they couldn't be more wrong.
I fight two battles every day. Really three or four, but let's leave my weight out of this. I work on buyers to convince them of the life changing power of a Lake Geneva vacation home, and I work on sellers to convince them that they're property is not Monticello as much as they believe that it is. Many sellers do not listen. And it's not just my sellers, it's sellers in Lake Geneva and Fontana, and sellers in Northbrook and Naperville. The pricing battles are waged in every real estate office in this country, and unfortunately for most sellers, it's the Realtors who are in the right. Today, it's not about sellers that won't listen. Instead, today is about the sellers that do listen, and with specificity, it's about my sellers that have recently listened.
Yesterday I reduced the prices on three of my listings. I've been hoping for the reductions for a while, and I now have the price corrections that I've been looking for. I'm not really a percentage point reduction guy. In other words, if I reduce a price from $759k to $749k, I'm not going to go out of my way to tell you about it. Such discounts are absurd, and I wouldn't waste your time by telling you about them here. No, today there are three reductions, and all are significant.
The first reduction affects my lakefront condo at Bay Colony. This two bedroom condo was listed earlier this year at $649k. That price was simply too high. Yesterday, the seller agreed, and we dropped the price to $599k. That's a much more reasonable figure, and the unit should get much more play as we move through our ethereal Lake Geneva summer. Another reduction, also in Williams Bay, takes place at my dear cottage listing in Cedar Point Park. This cottage is hands down the cheapest home available with this sort of proximity to the water around the entire lake. The price last fall was $499k. The price this spring was $449k. The price today is $399k. This new price should be enough of an attractant for buyers to perk up and pay attention, and perhaps they'll realize that a little sweat equity is worth the classic cottage charm and superior lake view that define this otherwise humble mokki.
As a side note, I also have a vacant lot listed in Cedar Point Park that we just put back on the market at $89,900. This lot has some difficulties, as the corner location combined with increased building restrictions make a variance necessary if someone wishes to build on this site. It's a great price, if only someone feels like doing a little hand to hand combat with the onerous village of Williams Bay.
The last reduction is also a sizable one, and the property is among the most unique in the rural market here. The hobby farm that I previously had listed at $799k has been reduced to $699k. This farm is in need of some tender loving care (that's TLC for you Lisa Lopez fans), but the property and estate setting is unrivaled. 12+ acres, a main house with four car garage and indoor pool, guest house with two units, pole barn, and tennis court- all within a half mile of Williams Bay. It's a beautiful property, and the C-2 zoning means you could bring your horses and chickens and embrace your inner Andy Farmer. Personally, I would love to own this property. It's just that I'm a humble Realtor and such extravagances are not in my wheelhouse. Yet.
As I've said before, don't let the lack of reductions market-wide bother you. Just because sellers aren't willing to reduce their asking prices, doesn't mean they don't want to sell. It's sort of like an accounting trick where you mentally pretend your value is X, as reflected in the asking price, all the while being fully aware that your actual value is X-15%. I expect to see more reductions throughout the summer, as sellers battle a typical mid-summer buying lull. If I can't focus on anything given the abundance of sun and Lake Geneva fun, I certainly can't blame my prized buyers for doing the same.
